This month we will continue to dive headfirst into specific verticals and explore their specific bookkeeping needs. Previously we looked at service-based companies where Phyllis got her start, today we will be focusing on the word of realtors!
Like all businesses, the financial challenges that realtors face, while following a similar pattern to other businesses, are unique. Most realtors are stuck doing their own bookkeeping, which can be daunting considering all the other hard work that goes into being a successful realtor. By focusing on their specific needs Deitz Consulting can optimize their cash flow, minimize their tax burden and keep their books organized to make their money work for them.
Expenses
Tracking expenses is important for every company, but it can be tricky when it comes to realtors. When it comes to selling other people’s homes you can never be completely sure of what will be needed to close the sale. Below are some common expenses that realtors encounter.
Marketing
Marketing is important not only in getting eyes on your listings, but also when it comes to finding new buyers and sellers. Marketing can include everything from boosted posts on social media, having professional photos taken, 3D tours or even fully produced videos. Doing these things right means putting your best foot forward to attract buyers and sellers and giving the properties you represent the best chance to get their full value.
Tracking these expenses correctly is every bit as important as the marketing itself. Forgetting to track an expense or putting them into the wrong category in QuickBooks can cost realtors dearly when tax season comes around.
Staging
Some houses need a little bit of help to live up to their full potential, and when that is the case a good staging company can be a lifesaver! A well-staged house allows buyers to truly immerse themselves in what it would be like to live there. Getting buyers excited about a home is always a great nudge towards making a decision to buy it.
Like marketing, this is another expense that needs to be closely tracked, documented and categorized.
Repair/maintenance
It doesn’t take an expert to know that a house obviously in need of repair is going to be harder to sale or bring in significantly less income. While sometimes listing a house “as is” is a great way to allow the new owners to make it their own; when the repairs run the risk of getting in the way of getting potential buyers to even come to a showing they need to be dealt with earlier in the process.
Mileage
Realtors are usually road warriors who put endless miles on their cars traveling around to showings, networking or checking in on repairs/maintenance. Since gas is far from free, and cars require routine maintenance to continue running; it is important to track mileage. Tracking mileage allows you to compensate yourself for gas as well as consider the money you spend keeping your vehicle in safe and comfortable running condition.
Income
Tracking income is another important factor when it comes to keeping the books for any company. For realtors there are multiple potential streams of revenue making it a little more challenging to keep track of at times. Whether it is commissions, rental income or a referral payment from a fellow realtor; tracking all this income correctly allows realtors to have an accurate view of their income vs. expenses in order to make smart decisions and plan for the future. Since realtors often experiences a variable revenue stream based on the season and how many listings they have, tracking a of these things on your own can be an uphill battle.
Another area where Deitz Consulting excels is when realtors become investors and begin purchasing homes or property on their own. When it comes to investment properties or flipping a house it is vital to have an accurate picture of how much has been invested to make sure the project remains profitable. Deitz can accurately track all purchases, all project cost, and keep your project homes on track to make you money.
With an income that can vary greatly, realtors need a solution that meets all of their needs while being a great value. Deitz Consulting provides exactly that by working with realtors to address their specific needs rather than wrapping them into a contract that includes more services or time than they really need. This approach makes sure that our services are a no-brainer during the busy season and still aren’t a burden when the listings slow down.
Knowing your customers is the best way to make sure you are meetings their needs and maintain loyalty. With a nearly non-existent attrition rate and most of our business coming from referrals from our current customers. Deitz Consulting prides ourselves on know your business so that we can meet and anticipate your needs!